Is your TPAR lodged? Don’t be penalised this August.

Avoid late penalties & stay compliant with your contractor payment reporting. 


For many small to medium-sized businesses in Perth, staying on top of your tax obligations can feel like a constant balancing act — especially as EOFY rolls around. One important yet often misunderstood reporting requirement is the Taxable Payments Annual Report (TPAR). 


If your business has paid contractors or subcontractors during the 2024–2025 financial year, you may need to lodge a TPAR with the ATO by 28 August 2025. Missing the deadline could result in late lodgement penalties, so it’s vital to take action now if you haven’t already. 


At Ascent Accountants, we regularly help clients navigate this reporting process, and we often hear the same questions: 


  • Do I need to lodge a TPAR? 
  • What exactly do I need to report? 
  • Can I do this myself, or should I get help? 


This blog post outlines everything you need to know about TPAR — who it applies to, what you need to include, how to lodge, and how to stay compliant with confidence. 

 

Who needs to lodge a TPAR? 

You must lodge a TPAR if your business paid contractors or subcontractors for services in any of the following industries: 


  • Building and construction 
  • Cleaning services 
  • Courier and road freight services 
  • IT services 
  • Security, investigation, and surveillance services 


If your business operates in one of these sectors — or offers multiple services where one of the above is included — it’s important to review your payments for the year. 

 

What if my business only provides these services part-time? 

If your business provides both TPAR-reportable and unrelated services, the ATO applies a 10% threshold: 


  • If 10% or more of your income comes from reportable services — you must lodge a TPAR. 
  • If it's less than 10% — you may be exempt, but it’s wise to check with your accountant. 


This area can get tricky, so don’t hesitate to seek guidance if you’re unsure. It’s better to clarify than risk underreporting or missing an obligation. 

 

Inclusions & exclusions. 

What do I need to include in my TPAR? 

When preparing your TPAR, you must report all payments made to contractors or subcontractors that include: 


  • Labour only 
  • Labour and materials combined (if included on a single invoice) 


The report should include the contractor’s ABN, name, address, total amounts paid (including GST). This applies to all invoices paid on or before 30 June 2025 — regardless of when the service was delivered. 

 

What not to include in your TPAR. 

Some payments do not need to be included in your TPAR, such as: 


  • Payments for materials only (with no labour) 
  • Incidental labour (minor or non-essential) 
  • Unpaid invoices as of 30 June (only report payments already made) 
  • Payments to employees (report separately via Single Touch Payroll) 
  • Payments to labour-hire workers (reported under a different system) 
  • Foreign residents working outside Australia 
  • Contractors who do not have an ABN (different PAYG rules apply) 
  • Payments within consolidated corporate groups 
  • Payments for private or domestic services 

 

How to lodge your TPAR. 

There are a few ways to lodge your TPAR with the ATO. Choose the one that suits your setup: 


  1. Via business software (SBR-enabled) 

If you use Standard Business Reporting (SBR)-enabled software, you can create a TPAR file and lodge it using the file transfer function. 


   2. Online Services for Business 

Using your ABN and myGovID, you can lodge via the ATO’s online platform. Access the Relationship Authorisation Manager (RAM) to submit under “Lodgements”. 


   3. Online Services for Individuals/Sole Traders 

Sole traders can also lodge through myGov. Go to Tax → Lodgements → Taxable Payments Annual Report. 


   4. Through your BAS or tax agent 

Your trusted tax or BAS agent (like us!) can prepare and lodge your TPAR on your behalf — ideal if your business has multiple contractors or complex reporting needs. 


   5. By paper (not recommended) 

If you must lodge by post, the ATO requires original documents — no photocopies or scans — and they must arrive before 28 August. Allow postage time if using this method. 

 

Top tips for getting TPAR-ready 

  • Use the ATO’s free worksheet to track payments throughout the year (this isn’t submitted but is a great internal tool). 
  • Keep contractor ABNs, payment details, and invoices well organised. 
  • Review payments early to avoid last-minute panic or missed deadlines. 
  • If in doubt — ask for help. Getting it wrong can lead to compliance issues! 

 

Need help? 

Lodging a TPAR can feel overwhelming — especially if you manage multiple contractors, large volumes of payments, or operate across service categories. 


We can take care of your TPAR reporting from start to finish — making sure every detail is correct, submitted on time, and backed by the latest ATO guidance. Get in touch today for personalised tax support. 


Need help with your accounting?

Find Out What We Do

What does “comfortable retirement” really mean?

July 14, 2025
What does a “comfortable” retirement mean to you? For some, it’s travel and lifestyle. For others, it’s simply having the bills paid on time without stress. Whatever your version of comfortable looks like — the key is planning. We’re here to help!

What is a Clearance Certificate? Why do you need one when selling property?

July 14, 2025
Selling property in Australia? Don’t forget your Clearance Certificate — it could SAVE you THOUSANDS at settlement. If you don’t have one, the buyer is legally required to withhold part of your payment — delaying and reducing what you receive. Applying is free and easy — and Ascent Accountants can help you get it sorte

June 30 Checklist for Business Owners

June 12, 2025
June is zooming by! Here’s another handy checklist for business owners—let’s get you sorted for EOFY and tick off those to-dos.

Our EOFY Guide for Taxpayers.

June 12, 2025
EOFY is almost here. Are you ready? Now’s the time to get your finances in order and maximise your tax return. Our latest guide covers top tax deductions, super contributions & co-contributions, SMSF must-dos, PAYG instalment tips and a 30 June checklist.

Maximise Your Rental Property Tax Deductions this EOFY

June 12, 2025
Whether you're a first-time landlord or managing multiple properties, understanding what you can claim at tax time can make a big difference to your bottom line. In our latest blog, we break down the most common (and often overlooked) deductions.

What is a Bridging Loan? And When Would You Need One?

May 12, 2025
Buying and selling property rarely lines up perfectly. The logistics of it all can be incredibly stressful. If you’ve found the perfect next home but haven’t sold your current one yet, a bridging loan can make your move easier, without having to wait on your current property sale.  What is a bridging loan? A bridging loan is a short-term loan that gives you the funds to buy a new property before your current property has sold. It’s designed to bridge the gap between buying and selling. These loans are generally interest-only and are typically offered for up to 12 months, giving you time to sell and settle on your current home while already owning the next one. When would I need a bridging loan? You might consider bridging finance if: You’ve found your next home but haven’t yet sold your current one. You want to avoid renting or moving twice between sales. You want more time to prepare your home for market to get the best sale price. You're building a new home while still living in your existing one. How does it work? Peak Debt: The lender combines your current mortgage, the cost of the new property (including stamp duty and legal fees), and any interest (if it’s being capitalised). This total is known as your Peak Debt. Interest Only: During the bridging period, you’ll typically pay interest only — or the interest may be capitalised (meaning it’s added to your loan rather than paid upfront). Sell Your Property: Once you sell your existing home, the sale proceeds are used to reduce your Peak Debt. End Debt: The remaining balance becomes your End Debt, which then continues as a standard mortgage. An example of a bridging loan. Your current home loan = $200,000 New home = $800,000 Total bridging loan (Peak Debt) = $1,000,000 After selling your home for $600,000, that amount is used to pay down your loan Remaining loan (End Debt) = $400,000 Things to consider. Like any major financial decision, it’s important to understand all the moving parts before you commit. Time pressure: You typically have 6–12 months to sell. If you don’t sell in time, the lender may step in to sell the property and/or charge default interest. This is an extra interest rate that a lender charges when you fail to meet your loan obligations — in this case, not selling your property within the agreed timeframe. Interest costs: If interest is capitalised, it means you're not making repayments during the loan period, so the interest gets added to the loan balance instead of being paid separately. This means your loan grows each month. Making even small repayments can help keep this under control. Equity & serviceability: Lenders will assess how much equity you have and whether you can manage the loan during the bridging period. Loan-to-value ratio: If your End Debt ends up being more than 80% of the new property’s value, you may have to pay Lenders Mortgage Insurance (LMI). Existing loan setup: If your current lender doesn’t offer bridging loans, refinancing may be required — sometimes triggering break fees if your existing loan is fixed. This means you may have to pay a penalty if you end a fixed-rate home loan early (before the agreed term is up). Is a bridging loan right for you? That’s the big question. Bridging finance can offer flexibility and peace of mind, helping you move forward with confidence rather than being held back by uncertain sale timing. But it’s not without risk or cost — so it’s vital to understand the structure, timeframe, and repayment expectations. If you’re considering your next property move and want tailored advice on whether bridging finance suits your situation, talk to the team at Ascent Property Co. or Ascent Accountants. We can also put you in touch with finance brokers to discuss what is best for you.
More Posts